UK's FCA Sets October 2027 Deadline for New Crypto Rules with Lower Stablecoin Capital Floor

The UK's Financial Conduct Authority (FCA) has finalized its comprehensive cryptoasset rulebook, establishing a new authorization regime for crypto exchanges, custodians, stablecoin issuers, and staking services. The rules take effect on October 25, 2027, with authorization applications opening from September 30, 2026, according to Briefly. The final rules reduce the proposed stablecoin capital floor from 2% to 1% of issued value. Non-systemic issuers must hold capital equal to 1% of tokens in circulation, as reported by Briefly. The policy statements also set prudential requirements, market-abuse controls, and stablecoin standards following over a year of consultations. The Guardian reported that the regulations require crypto firms to prove they can withstand market shocks and hold capital against risky assets. The rules significantly increase oversight of an industry that has previously faced minimal regulation, despite growing popularity driven by social media influencers and legitimization efforts under US President Donald Trump. "the first comprehensive regulatory framework" FCA executive director David Geale made that statement about the new rules, marking a major shift in UK crypto oversight. The regime will cover exchanges, custodians, and staking services under a single authorization process designed to bring the sector into line with traditional financial regulations. With authorization applications opening in September 2026, the FCA is giving the industry over a year to prepare before the rules become enforceable in late 2027. The phased timeline reflects the complexity of the new prudential and market-integrity standards, as noted by Briefly.

2 sources•30 JunRead the Baker's Take→